Zacks Research Upgrades Ready Capital (NYSE:RC) to Hold

Key Points

• Zacks Research has upgraded Ready Capital from a "strong sell" rating to a "hold" rating, indicating a more favorable outlook for investors.
• Several analysts have issued varying ratings, with one buy rating, five hold ratings, and two sell ratings, resulting in an average rating of "Reduce" and a consensus target price of $5.30.
• Ready Capital reported a quarterly earnings per share (EPS) of (\$0.10) with a negative net margin of 40.59%, highlighting ongoing financial struggles.

Ready Capital (NYSE:RC - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on the stock. Wall Street Zen cut shares of Ready Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Weiss Ratings reiterated a "sell (d)" rating on shares of Ready Capital in a research note on Wednesday, October 8th. UBS Group reduced their target price on shares of Ready Capital from $4.00 to $3.50 and set a "neutral" rating for the company in a research note on Tuesday. B. Riley reduced their target price on shares of Ready Capital from $6.00 to $4.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Ready Capital from $3.75 to $3.50 and set an "underperform" rating for the company in a research note on Thursday, October 9th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Ready Capital currently has an average rating of "Reduce" and a consensus target price of $5.30.

Ready Capital Stock Down 0.7%

RC stock opened at $3.38 on Tuesday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.61 and a quick ratio of 1.61. Ready Capital has a 52-week low of $3.31 and a 52-week high of $7.64. The company has a 50-day moving average of $3.99 and a two-hundred day moving average of $4.28. The stock has a market capitalization of $554.60 million, a price-to-earnings ratio of -1.82 and a beta of 1.45.

Ready Capital (NYSE:RC - Get Free Report) last released its quarterly earnings results on Tuesday, September 9th. The real estate investment trust reported ($0.10) earnings per share (EPS) for the quarter. Ready Capital had a negative net margin of 40.59% and a positive return on equity of 3.76%. The firm had revenue of ($9.77) million for the quarter. As a group, equities research analysts anticipate that Ready Capital will post 0.93 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RC. Private Management Group Inc. bought a new position in Ready Capital during the first quarter worth about $8,235,000. Marshall Wace LLP acquired a new stake in shares of Ready Capital during the second quarter worth approximately $6,542,000. Nexpoint Asset Management L.P. acquired a new stake in shares of Ready Capital during the first quarter worth approximately $4,444,000. Invesco Ltd. increased its holdings in shares of Ready Capital by 16.1% during the first quarter. Invesco Ltd. now owns 3,618,181 shares of the real estate investment trust's stock worth $18,417,000 after buying an additional 502,162 shares in the last quarter. Finally, Voya Investment Management LLC increased its holdings in shares of Ready Capital by 773.7% during the first quarter. Voya Investment Management LLC now owns 443,692 shares of the real estate investment trust's stock worth $2,258,000 after buying an additional 392,911 shares in the last quarter. Institutional investors own 55.87% of the company's stock.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments.

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